A daycare center in Westbury abruptly closed ahead of the Labor Day weekend after it said a business dispute with the former owners of the center forced it to shut down.
Storybook Kids Prep closed its Westbury location on Friday, Aug. 29, leaving many without a place to drop off their children.
Brendan Caro, a representative of Storybook Kids Prep, said the daycare business agreed to purchase and operate the Westbury center in May, giving $450,000 as a down payment to the former operators, Little Sponges. He said his company was faced with multiple business disputes, resulting in the daycare’s closing.
“Since taking over, Storybook has uncovered significant financial discrepancies,” Caro said.
He listed multiple alleged business disputes, saying the prior owners had withheld nearly $40,000 in earned funds for June and July, refused to transfer direct deposit arrangements for over $60,000 in August payments and failed to disclose more than $30,000 in parent deposits collected before the sale. He also said Little Sponges had left Storybook responsible for multiple past financial obligations.
“Little Sponges has refused to cooperate,” Caro said.
Caro said Little Sponges issued an eviction notice to remove Storybook from the premises, while simultaneously withholding the operating income that would have enabled Storybook to pay rent.
“After exhausting every effort to resolve these issues and protect families, and being left with no operating income, the new owners made the difficult decision that it was in the best interest of the children and families to close the Westbury daycare,” Caro said.
Efforts to immediately solicit comment from Little Sponges were unavailing.
According to the state Office of Children and Family Services, Little Sponges had been licensed since 2010. The Westbury center had an inspection in March and another in April, and both found no violations, the state department found.
Storybook, a Bay Shore-based business, has operated since 2015. Its Suffolk County center has had three inspections this year, one in April, May and its most recent on Aug. 13. All three inspections had several violations that have all been corrected, according to the state department.
As of Tuesday, Sept. 2, Storybook’s website makes no mention of the Westbury location, but says it is “now enrolling at both locations.”
The closure came just days before a majority of Long Island school districts begin the 2025-26 academic year.
Storybook said it is offering parents refunds or the opportunity to send their kids to its Bay Short location.
Westbury Tendor Loving Nursery Daycare posted on Facebook that it is happy to assist families in the area after Storybook’s closing.
“This is why it’s always important to do your research and support small business when you can,” it posted on Facebook.
